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Overall plan on development of shipbuilding industry of Vietnam to 2020 and vision to 2030 

 Thursday, December 12,2019

AsemconnectVietnam - Overall plan on development of shipbuilding industry of Vietnam must meets requirements of implementation of Vietnam’s marine strategy to 2020, contributing to socio-economic development; taking advantage of existing conditions of marine resources, labor and development trend of shipbuilding industry in the world.

 OVERALL PLAN ON DEVELOPMENT OF SHIPBUILDING INDUSTRY OF VIETNAM TO 2020 AND VISION TO 2030

I. Development viewpoints

1. Overall plan on development of shipbuilding industry of Vietnam must meets requirements of implementation of Vietnam’s marine strategy to 2020, contributing to socio-economic development; taking advantage of existing conditions of marine resources, labor and development trend of shipbuilding industry in the world. To plan, place system of shipbuilding industry factories in a reasonable manner, concentrating on locations having advantages of geographical position, natural conditions, market, trade and traditional maritime region. To link closely development of shipbuilding industry with development of defense industry, supporting industry and other economic sectors.
2. To select appropriate direction and steps, combining domestic resource with import and cooperation; to encourage all resources to build and develop effectively shipbuilding industry under the plan as well as having appropriate development mechanisms and policies to meet practice demand.
3. To expand cooperation and joint ventures with foreign partners; to enhance attraction of advanced shipbuilding technology investment with flexible policies, creating a breakthrough in investment attraction; to create and reinforce production links between domestic producers and foreign enterprises; to expand quantity and enhance domestic and oversea value of ship repairing. To step by step construct and develop shipbuilding industry associating with green growth, energy saving, ensuring requirements of environmental protection and sustainable development.
II. Objectives
1. Overall objectives
Construction and development of Vietnam shipbuilding industry to 2020 and development orientation to 2030 aims to meet requirements of marine economic development in accordance with Vietnam's marine strategy to 2020, serving demand of socio-economic development; contributing to strengthen national defense, security and protection of national sovereignty over the waters and islands of the country.
2. Specific objectives
2.1. To 2020: to maintain and develop capabilities of existing shipbuilding and ship repair units; to develop new shipbuilding and ship repair to meet demand of domestic and foreign market; to form a number of large scale ship repair center associating with system of seaports and importance international maritime routes; to have advanced and environmentally friendly ship repair technology; to ensure competitiveness of quality and price of ship repair service; to be able to undertake synchronized repair of all kinds of domestic and foreign ship having tonnage of 300,000 tons;
2.2. To 2030: to fulfill long term development of shipbuilding industry in accordance with market demand, financial viability and management capacity; forming centers having capacity of newly building specialized ship with high technology, huge economic value including container ships, tankers, bulk carriers, floating docks and oil floating storage to 100,000 tons to meet international standards of quality, serving demand of domestic market and for export.
III. Content of plan
1. For new shipbuilding facility: Maintaining shipbuilding centers, as follows:
1.1. Northern region: to concentrate in Hai Phong city, Quang Ninh province on basis of shipbuilding factories of Ha Long, Pha Rung and Bach Dang. Out of which, Ha Long shipbuilding factory specializes in newly building complex cargo ship, requiring high technology such as car carriers, container ships, synthetic vessels with tonnage of 70,000 tons. Pha Rung shipbuilding factory specializes in types of medium-sized tankers from 10,000 - 40,000 tons, especially chemical tankers, oil tankers and bulk carriers. Bach Dang shipbuilding factory specializes in newly building types of complex tankers, floating equipment, requiring high technology such as liquefied petroleum gas tankers (LPG), container vessels with a tonnage of 30,000 tons. In orientation to 2020, retaining a portion of Nam Trieu shipbuilding factory to move Bach Dang shipbuilding factory out of inner city of Hai Phong city.
The remaining shipbuilding factories focus on building common types of ships or act as satellite factories for large shipbuilding factories in region. Specifically, Thinh Long shipbuilding company builds fishing control vessels, fishing boats, cargo ships with a tonnage of 25,000 tons; Nam Trieu shipbuilding factory will be retained a apart to serve moving Bach Dang shipbuilding factory out of inner city of Hai Phong city, the rest will be sold, transferred and for investment cooperation as prescribed. Vinacomin shipbuilding engineering company builds types of dry bulk vessels with a tonnage of 15,000 - 30,000 tons and acts as satellite factories for Ha Long shipbuilding factory. Hai Phong equipment manufacture and shipbuilding company (LISEMCO) builds types of small scale container ships with a tonnage of 6,500 tons for export. Existing transportation shipbuilding factories along rivers of Van Uc, Kinh Mon, Thai Binh, Tra Ly, Red, Ninh Co, Day, Dao (Nam Dinh province) locating in city of Hai Phong, provinces of Quang Ninh, Hai Duong, Hanoi, Phu Tho, Thai Binh, Nam Dinh, Ninh Binh build vessels under 5,000 tons or act as satellites units for other shipbuilding factories in the region, developing in line with plan of these localities, in accordance with market demand and other specialized plans of the localities and region.
Shipbuilding factories newly building dedicated, special vessels, floating facilities for operation of the armed forces; workshop vessels, search and rescue vessels, marine research vessel in northern region will be concentratively developed in Hai Phong city (on basis of shipbuilding factories of Damen, Cam river, 189, Hong Ha and X46).
To implement to move shipbuilding factories of Cam river, X46 out of center of Hai Phong city, out of which, mergering Ben Kien shipbuilding factory to Song Cam shipbuilding factory; to build completely branch II of X46 shipbuilding factory in north bank of Cam river to become a center of building and repairing dedicated vessels and acts as a satellites factory for other shipbuilding factories in region.
1.2. Central region: to concentrate in provinces of Quang Ngai, Khanh Hoa on basis of existing large shipbuilding factories. Out of which, Dung Quat shipbuilding factory specializes in building large scale oil vessels with a tonnage of 100,000 tons, oil floating storage and composition of oil rigs to serve oil and gas industry; after 2015, to look for a strong partner in technology, markets and capital to form joint venture, associate, cooperate and invest to complete the factory as plan, can build ship under export orders; Hyundai - Vinashin shipbuilding factory newly builds types of aggregate vessels with a tonnage of 30,000 to 50,000 tons for export. Cam Ranh shipbuilding factory, after 2015, will be focused on newly building vessels of dry bulk, general cargo and oil vessels with a tonnage of 50,000 tons. Oshima - Cam Ranh shipbuilding factory newly build types of transport tankers with as tonnage of 30,000 to 50,000 tons for export. The remaining factories will focus on building all kinds of cruise ships, fishery vessels, dedicated ships and acts as satellites units for above-mentioned factories, developing in accordance with local plan, in line with market demand and specialized plan of localities and region.
Shipbuilding factories building newly dedicated, special ships, floating facilities for operation of the armed forces; workshop ships, search and rescue ships, marine research vessel in Central region are constructed concentratively in city of Da Nang, Cam Ranh (based on Song Thu and X52 shipbuilding factories).
1.3. South region: to focus on exploiting efficiently existing shipbuilding factories (including Saigon shipbuilding industry company and Long Son shipbuilding and repairing factory). Out of which, Saigon shipbuilding industry company builds newly vessels of oil and gas engineering services, passenger ferries, passenger ships and cargo ships with a tonnage of 25,000 tons combining with repair of transport ship. Long Son shipbuilding and repairing factory builds newly transport ship with a tonnage of 50,000 tons for export. Other transport ship building factories such as Ba Son, An Phu, PTSC Ship Yard, Nhon Trach specialized shipbuilding and ship equipment manufacturing factory (Dong Nai province), Caric, X51, Bao Tin, Saigon Ship Yard, shipbuilding factories in Dong Xuyen industrial park build dedicated ship, tourism vessels, marine research vessels, oil and gas service vessels, passenger ships ... and act as satellites units for above - mentioned shipbuilding factories, developed in accordance with local plans, in line with market demand and specialized plans of localities and region.
Shipbuilding factories building newly dedicated, special ships, floating facilities for operation of the armed forces; workshop ship, search and rescue ship, marine research vessels in south region will be constructed concentratively in Vung Tau, Dong Nai, Sai Gon ( based on shipbuilding factories of X51, Ba Son , PTSC Ship Yard , Nhon Trach specialized shipbuilding and ship equipment manufacturing factory (Dong Nai province), Caric, Saigon Ship Yard, shipbuilding factories in Dong Xuyen industrial park. In southwest provinces such as Long An, Hau Giang, Can Tho, Kien Giang, to prioritize to develop factories of shipbuilding, inland waterway vessels, fishing boats and small coastal vessels to serve market demand in the southern region.
2. Ship repairing factories
Ship repairing factories is built, developed in line with a plan on constructing and developing new shipbuilding factories, a plan on developing national seaport system. Out of which, in northern region, associating with ports of Hai Phong, Quang Ninh, it plans to include Nosco - Vinalines ship repairing factory, Vinalines Dong Do ship repairing factory, shipbuilding factories of Pha Rung, Bach Dang and Ha Long. In central region, ship repairing factories are given priority to develop in gulfs in south central region at suitable construction scale to meet a part of repairing demand of international fleets operating in international maritime routes through the East sea and support fleets operating in sea ports under port group No.5; it is limited to develop new shipbuilding and repairing factories due to lack of land and difficulties in solving environmental problems, including ship repairing factories of Cam Ranh, Dung Quat, Hyundai - Vinashin, investing in suitable technology and equipment in accordance with requirements of environmental protection to engage in ship repair market with a tonnage of 100,000 to 300,000 tons as ship repairing demand increases. In southern area, investing in completing existing factories or making investment in new factories in order to create a system of ship repair factories fitted with large seaport system which has been planned, to serve seaport system. In Cai Mep - Thi Vai, Soai Rap, Nha Be, Saigon seaports, it includes X51 factory, ship repairing factory of Saigon shipbuilding and maritime industry company, Saigon shipbuilding industry company; serving seaport system on Hau river, Tra Vinh province; serving seaports in gulf of Thailand, provinces of Ca Mau and Kien Giang.
3. Old ship demolishing factories
To orient to develop old ship demolishing factories to concentrate in Hai Phong city and in several central provinces which have suitable natural, socio-economic conditions under principles of maximum salvaging existing infrastructure of new shipbuilding factories and ship repairing factories; old ship demolition must ensure safety, security and prevention of fire, explosion and environmental pollution prevention, environmental protection .
The Ministry of Transport, Ministry of Natural Resources and Environment and local authorities identify position, scale of old ship demolishing factories, forming and announcing specific plans.
4. Development of supporting industries to serve shipbuilding industry
Network of industrial factories serving shipbuilding industry is planned and constructed in association with a plan of supporting industry across the country, including: in northern region, constructing shipbuilding industrial parks (beside existing shipbuilding industrial parks of An Hong, Shinec, Cai Lan) in accordance with approved plans. In central region, it fully utilize processing capacity of production line of pipe, coating, casting, forging; line of repairing diesel engine of ships in military shipbuilding factories; giving priority to arrange land in industrial park in provinces of Phu Yen, Khanh Hoa to build supporting industry factories to back shipbuilding, ship repairing centers in central region. In southern region, fully utilizing processing capacity of production line of pipe, coating, casting, forging; line of repairing diesel engine of ships in shipbuilding industry engineering factories of the military units, enterprises in Dong Xuyen industrial park and other industrial parks.
To construct centers of treatment of solid waste, heavy metals and industrial waste in industrial parks in associating with regional shipbuilding, ship repairing centers. In northern region, locating in Cai Lan industrial park, Pha Rung industrial park; in central region, locating in industrial park of Dung Quat, south Van Phong, Cam Ranh; in southern region, locating in Cai Mep - Thi Vai industrial park and other industrial parks in accordance with specialized plans in localities and region.
5. Units of ship studying, vocational training and designing
To gradually build a complete training system of technical workers, vocational training schools, colleges and universities to serve shipbuilding industry associating with existing school system, including: for undergraduate and university, researching to add shipbuilding industry specialty in existing universities (universities of Technology, marine, transportation in Ho Chi Minh city). For vocational training, maintain and intensive investing in material facilities of vocational training schools, practice units; improving quality of lecturers, training programs at existing schools, linking training with foreign partners to train workers with international certification in regions of north, central and south. To promote cooperation and association between domestic and foreign designed ships units. To invest in research centers, ship model testing tank reaching international standards through national key laboratory programs. To perfect system of shipbuilding technical regulations in accordance with international integration requirements of shipbuilding industry.
6. Shipbuilding industry development orientation plan to 2030
In a period of 2020-2030, it continue to invest intensive in intensive factories, industrial units and training schools of shipbuilding industry of Vietnam to raise operation capacity of factories which have invested in; to consider to invest in some potential factories with appropriate scale to meet market demand .
7. Implementation progress
7.1. in a period to 2015: to continue to restructure comprehensively and basically shipbuilding industry of Vietnam to ensure maintenance of shipbuilding, ship repairing factories which are mentioned in the plan to meet market demand; to maintain basic capacity of shipbuilding industry to meet domestic demand and export; to convert functions and tasks, merger or dissolve under legal regulations to avoid situation of loss-making and spread investment for less effective shipbuilding and ship repair factories.
7.2. In a period from 2016 to 2020: to implement to gradually move some shipbuilding factories out of urban center (shipbuilding factories of Song Cam, Bach Dang in Hai Phong city) and to complete construction of foreign invested shipbuilding and ship repairing factories under plan. In 2020, to form shipbuilding and ship repairing centers in 03 region of north , central and South reaching levels of technology and productivity to be equal to those in countries in the southeast Asia; to gradually increase export ship output with competitiveness products of Vietnam such as transport vessels having high complexity requirements including car carriers, container ships, oil tankers, some types of chemical tankers, general ships; export some specialized ships such as high -speed patrolling boats, search and rescue boat, workshop ship and yacht ships with estimated export output of 1.67 to 2.16 million tons/year, including export processing orders of foreign-invested enterprises for parent companies.
8. Key mechanisms, policies and solutions
- To give priority to rearrange shipbuilding and ship repairing factories in accordance with restructuring plan of Vietnam shipbuilding industry group and other shipbuilding enterprises;
- To select strategic partners for shipbuilding industry as well as promoting enterprises to take part in value chain of multinational corporations;
- To promote development of supporting industries to serve shipbuilding industry; to promote innovation of technology of newly shipbuilding and ship repairing;
- To develop mechanisms and policies on capital , taxes to serve demands of shipbuilding development as plan; to establish mechanisms and policies to consume domestic products and shipbuilding and ship repairing services;
- To arrange appropriate land in localities for development of shipbuilding industry; newly shipbuilding and ship repairing units allowed to use funds for function conversion energy when displaced as plan;
- To adopt policies of bonded warehouse for imported materials and equipment of export shipbuilding factories.
9. Implementation funds
To promote socialization of infrastructure development investment in shipbuilding industry. To encourage and create favorable conditions for enterprises of all economic sectors (both domestic and foreign) to take part in investing in construction and development of newly shipbuilding and ship repairing units, supporting industries under forms in line with current legal regulations. The State budget only focuses on investment and partial support essential infrastructure projects for production (public works and infrastructure projects connecting to shipbuilding factories) for factories which perform tasks of national strategic objectives.
IV. Responsibility for implementation
1. Ministry of Transport organizes to manage implementation of the plan; organizing arrangements for specific projects in accordance with an approved plan; coordinating with related People's Committees of centrally-run provinces and cities to research, establish detailed plan of shipbuilding and ship repairing units; submitting to the Prime Minister for consideration and decision to adjust these plan when needed. Organizing to review, complete priority policies to use domestic products and services of shipbuilding and ship repairing, programs and contents of vocational training for shipbuilding industry, system of technical regulations for shipbuilding industry of Vietnam. The Ministry of Transport shall functions as the main implementer, in collaboration with the Ministry of Natural Resources and Environment and the relevant localities to fix position, build and make public plan of old ship demolishing units as prescribed.
2. Ministry of Industry and Trade shall functions as the main implementer, in collaboration with the Ministry of Transport, local authorities and other relevant agencies to set up a plan on developing support industry for shipbuilding industry in the wholly country. To research, develop mechanisms and policies on encouraging use of domestically made mechanical products, submitting to the Prime Minister for consideration and decision.
3. Ministry of Finance shall function as the main implementer, in collaboration with the State Bank of Vietnam and relevant bodies to research and set up mechanism, policies on attracting, mobilizing domestic and foreign capital resources in order to encourage development of Vietnam’s shipbuilding industry, submitting the Prime Minister for consideration and decision.
4. Ministry of Science and Technology shall functions as the main implementer to research policies on developing science and technology and policies on transferring technology of shipbuilding and ship repairing, policies on investing in key laboratory - ship model testing tank under key national program.
5. Ministry of Education and Training, Ministry of Labour - Invalids and Social Affairs in collaboration with the Ministry of Transportation complete training program, vocational training contents to meet demand on workforce development for shipbuilding industry.
6. Other ministries, agencies and localities have policies to encourage use of domestic products, shipbuilding and ship repairing services.

Long Giang
Source: www.mpi.gov.vn

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